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Journalizing liabilities transaction The following transactions of Denver Pharmacies occurred during 2013 and 2014: 2013 Jan 9 purchased computer equipment at a cost of $9,000,
Journalizing liabilities transaction
The following transactions of Denver Pharmacies occurred during 2013 and 2014:
2013 | |
Jan 9 | purchased computer equipment at a cost of $9,000, signing six month 6% note payable for that amount |
Jan 9 | recorded the week's sale of $64,000 three-fourths on credit and one-four for cash. Sales amount are subject to a 6% sale tax. Ignore cost of goods sold |
Feb 5 | sent the last week's sales tax to the state |
Jul 9 | paid the six-month, 6% nite, plus interest, at maturity |
Aug 3 | purchased merchandise inventory for $12,000 signing a six-month, 9% note payable. The company use perpetual inventory system. |
Dec31 | accrued warranty expense, which is estimated at 2% of sales of $603,000 |
Dec31 | accrued interest on all outstanding notes payable |
2014 | |
Feb28 | paid off the 9% note plus interest maturity |
Journalize the transaction in Denver's general journal. Explanations are not required.
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